That is because the housing rescue is worthless. It has further reduced the eligible buyer pool to soak up the excess housing inventory. The $7500 tax credit loan is a sham, and they are raising the cost of credit with Conforming and FHA loans.
This bailout is going to spike the market higher on Day 1 and 2 and then level off for a week or two. Then in mid October, the bottom is going to fall out because a ton of banks will become immediately insolvent the minute the first trade in the auction hits.
One OUT that I have heard discussed, is removal or altering of the mark to market accounting rules on these assets. That rule change in and of itself would do more to save the banks than the $700 billion would.
“One OUT that I have heard discussed, is removal or altering of the mark to market accounting rules on these assets. That rule change in and of itself would do more to save the banks than the $700 billion would.”
I had heard about that but not sure if it’s being considered. If true, it certainly should be.
Also, I heard Newt say something about doing away with capital gains being something he would include.
I hope someone is paying attention, because the dems want to own the solution, which can’t be good for the country.
“One OUT that I have heard discussed, is removal or altering of the mark to market accounting rules on these assets. That rule change in and of itself would do more to save the banks than the $700 billion would.”
Very bad idea. This hiding the sausage is why the markets have no confidence in anyone now. The good institutions suffer along with the bad one. This is exactly the opposite of what needs to be done. It causes the companies to appear to be worth more than they are. That is fraud!